Oil falls on lockdown angst, stocks rise to pare weekly loss

In this news, we discuss the Oil falls on lockdown angst, stocks rise to pare weekly loss.

NEW YORK (Reuters) – Crude oil fell again on Thursday as lockdowns in Europe and rising cases elsewhere clouded the outlook for demand, while stocks rose as Wall Street rallied.

French President Emmanuel Macron and German Chancellor Angela Merkel have ordered their countries to fall back on coronaviruses, as cases rise in 47 US states with patients overwhelming hospitals in parts of the country.

The European Central Bank said it would step up support for the bloc’s economy amid the pandemic, weighing on the euro even as policy remained unchanged as US gross domestic product soared to a widely predicted record rebound that helped trigger the purchase of stocks on Wall Street. , enough to stop the rout of stocks around the world so far this week.

The S&P 500 rose partly on bets for strong mega-cap earnings, but was still down almost 4% for the week so far as traders avoided the risk as a new wave of infections to COVID-19 would hamper economic recovery.

“It’s a big day in tech today in anticipation of their bottom line,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York City.

“The earnings season so far has produced some significant positive earnings surprises. We believe this is helping fuel today’s rally in anticipation of positive surprises from these companies.

The Dow Jones Industrial Average rose 259.92 points, or 0.98%, to 26,779.87, the S&P 500 gained 57.76 points, or 1.77%, to 3,328.79 and the Nasdaq Composite added 248.20 points, or 2.26%, at 11,253.07.

Global stock markets lost nearly $ 2 trillion on Wednesday as trading volume on U.S. stock exchanges rose 35% to its highest level in more than five weeks.

The pan-European STOXX 600 index lost 0.12% and the gauge of MSCI stocks around the world gained 0.82%.

The Japanese Nikkei fell 0.4% and futures were trending higher, while Chinese blue chips rose 0.7%.

“Asia is not really participating in this second or third wave story because it has its COVID largely under control,” said Rob Carnell, chief economist in Asia at ING.

Taiwan, which has Asia’s best-performing currency this year, on Thursday marked its 200th consecutive day without local transmission of coronavirus.

Emerging market equities rose 0.02%. The MSCI’s largest index of Asia-Pacific equities ex-Japan closed 0.19% lower. Japanese Nikkei futures rose 1.37%.

Concerns also hit commodities, with oil falling again and nearly 10% for the week. [O/R]

“As lockdowns start to bite demand concerns across Europe, the near-term outlook for crude begins to deteriorate,” said Stephen Innes, chief global market strategist at Axi.

US crude recently fell 3.02% to $ 36.26 a barrel and Brent was at $ 37.68, down 3.68% on the day.

The uncertainty surrounding Tuesday’s U.S. election also held traders on edge. President Donald Trump and his Democratic rival Joe Biden will rally supporters on the Florida battlefield, visiting the same city hours apart to offer their contrasting approaches to the resurgent coronavirus pandemic.

The ECB delayed further measures on Thursday, but hinted at action in December, which should keep the euro under pressure.

The dollar index rose 0.555%, with the euro down 0.62% to $ 1.1671.

The Japanese Yen weakened 0.37% against the greenback to 104.67 per dollar, while the British pound last traded at $ 1.2925, down 0.43% on the day.

The Bank of Japan did not change monetary policy parameters overnight, as expected, although it cut its growth forecast to reflect sluggish spending on services.

Yields on Treasuries rose, following US stocks, despite a weak initial reaction to the strength of GDP.

The 10-year benchmarks last fell 17/32 to return 0.8381%, down from 0.781% on Wednesday night.

Spot gold fell 0.5% to $ 1,868.33 an ounce. Silver was down 0.40% to $ 23.32.

Reporting by Rodrigo Campos; additional reporting by Marc Jones and Ahmad Ghaddar in London, Medha Singh and Shivani Kumaresan in Bengaluru and Herbert Lash, Kate Duguid and Gertrude Chavez-Dreyfuss in New York; Editing by Chris Reese and Nick Zieminski

Original © Thomson Reuters

Originally posted 2020-10-30 01:46:11.

      Bollyinside - Latest News and Reviews
      Enable registration in settings - general
      Compare items
      • Total (0)